Intellectual Capital- The Real Power Now!

Executive Summary

Fueled by the digital revolution, the era we live in demands hyper-innovation. Knowledge, tools, resources, channels, and even clients- everything is now just a few taps ahead. The world is inundated with opportunities at every step and such a resource-rich ecosystem has never been witnessed by any generation in the history of humankind. But ironically, a striking majority is found struggling with getting ideas and opportunities.

While now we are blessed with the best work environment and possibilities are more than ever, complaints are also being witnessed more than ever. There is a pressing need to focus on something special, something novel, and something innovative. And that need is to focus on the Intellectual Capital, which is elaborated prolifically with this article.

Main Discussion

In the Socratic Dialogue ‘Republic’, Plato famously quoted, “Our needs will be the real Creator”.

This famous statement underwent metamorphosis to its present form of the famous proverb, “Necessity is the mother of invention”!

This interprets that when something gets imperative we are forced to ideate & innovate the mechanism to attain it.

And the verity of this timeless indubitable statement is unquestionable!

But the legendry English writer Dame Agatha Christie, highly lionized for her 66 detective stories has judgmentally jibed-

“I don’t think necessity is the mother of invention. Invention, in my opinion, arises directly from idleness, possibly also from laziness, to save oneself the trouble.”

Well, without any intended contempt for Ms. Christie, I courteously call all to differ with this opinion, especially in this era of hyper-innovation.

Things are changing at breakneck pace, and currently the process of innovation has also changed dramatically.

Not only there is a need of innovation- more than ever, but an efficient execution plan & strategy is also required. For this corporates splurge whole-heartedly, and have deputed special personnel with prowess over various managerial & strategic aspects.

Not only the corporates, we all- at different phases and levels are called for the hard work, going an extra mile, pushing the limits, leaving the comfort zones, and so on. But still success seems fugacious and elusive. And the reason lies in the real definition of pushing the limits and leaving the comfort zones.

These clarions are not about burning the midnight oil and arduously exhaust oneself to the threshold of breakdown.

They are about finding the opportunity, finding the idea out of any situation which others are oblivious or not-interested.

Believe me; our lives are full of the ideas & opportunities. There is no dearth, the only need is the keen sharp eye which can assess an opportunity and intellectually execute to establish a formidable fortune.

And this is what real intellectuality is!

And, not just finding the idea, but earnestly working for it and executing in the efficient & lucrative way is what the intellectual capital is all about.

There are several persons having a sharp eye and good intellect. They might find an opportunity in a situation, and discuss how this can be profitable to many. After some moments of discussion they might themselves laugh on the airy-fairy notion, and everything is then lost is other thoughts.

This will not be the case of an intellectual discussion. This is nothing but a time-pass!

Well, it has been mentioned but still worth repeating- Real ‘Intellectuals’ are those who not only discern the obscure problem or the opportunity fast but also find the solution or the ways to execute and leverage lucratively.

And (as stated in this definition) intellectuality is not restrained to business, corporates, or startups but also on all other aspects. It can be even in the homemakers from the rural background! I personally know several instances where their strong intellect assisted them steer the situation of mediocrity to magnificence.

But deliberately, we will restrain our researches & discussions to the business aspects only; and let’s talk about the intellectuality in the corporate world.

After the elementary disquisition, I ask the businesses- Does your company have the ‘Real Power’?

With the term I allude to the strength of collecting and aggregating adaptive intelligence on a continual basis from a broad ecosystem of workforce, clients, partners, suppliers, academia, researchers, stakeholders, startups and many more independent third parties!

Out of the various conventional and stereotype strengths that a successful organization banks on, a new one has emerged. And that strength is the ‘Intellectual Capital’.

Much like the knowledge and creativity, this Intellectual Capital is the new source of value creation, and a factor of trust among the associated persons. This is now changing the landscape of establishing and operating the businesses.

I have been researching and discussing this topic much before it gained a mass popularity

It has never been the fittest who survives but those with the adaptability to the changing trends. And the intellectual capital has the unimaginable power which can make or break a business.

Many of the world’s most iconic and recognizable brands like Facebook (Now Meta), Apple, and others were started by young people with a vision. They perfectly executed the things in a right way, and their not so conventional offerings were accepted with open arms by the world.

Transformational times (like this) are an opportunity to disrupt the conventional markets, which are falling short on various aspects. This is the time to craft a new service division that will enhance & reinforce the firm’s value.

Other thing to note that the cut-throat competition now is also more than ever! One not only needs the right idea and tools but also the assistance from the market researchers and business consultant. These professionals can ease up loads of troubles with their experience and market numbers and can tell what will work and what will not in this dynamic era.

Throughout the history, innovations have emerged in form of waves powered by the disruptive technologies of that time. Each of new wave develops on the base of the previous one. And, therefore with the passage of time the new waves are coming faster and with larger dimensions.

We can now easily witness the greater innovation in shorter timespan than at any instance of the history of human kind. But at the centre of the wave is always the Intellectual Capital, and therefore has now gone more important than any other asset.

The biggest reason establishing the intrinsic importance of the Intellectual Capital is its ability to render a future value to the organization. It is really an anticipatory asset imparting a future-proof competitive edge to the organization.

Now let’s breakdown and delve into three major categories of the intellectual capital.

1. Structural Capital

Intellectual Capital has direct correlation with the creative imagination, and the biggest factor influencing this aspect is the work culture and environment at the workplace. Then only the workforce can unfold the creative spectrum. Take Google’s example- the workplace is much like a community at home rather than corporate. This work culture, mission & vision, policies leading to the better imaginative powers are an easy to measure intellectual capital there.

2. Connection Capital

This is a bit explicit capital in terms of the corporate world. Businesses run on the connections, and all know this fact. Relationships of a business entity with its associates, suppliers, vendors, employees, customers, shareholders, and others define the success to a great extent. The way policies and connections are crafted interprets the intellectuality of the developers. This is a tangible way to measure the Intellectual Capital of an organization.

3. Human Capital

It is the most abundant form of capital but the most difficult one to measure. Each & every business, irrespective of the type, kind, dimensions, presence, and domain- depends on the employees with varied skills, powers, proficiency, knowledge, and experience in the industry. The experience of the human capital- the individual intellectual capital working together is irreplaceable; this makes the human capital a tremendously valuable resource.

From these three main categories, one can easily assess that intellectual capital is intangible abstract asset. Other important thing to ponder is that human capital while being the most difficult one to measure is also the most imperative one to manage. This is because that management of the human capital is the cornerstone of accelerated innovation.

Moreover, your intellectual capital is the biggest strength to outshine and outsmart the competition. It is common news of successful businesses heavily investing the time & resources to come up with the valued intellectual capital that was stolen or the news regarding how the successful project was completely covert and hidden from all for the sake of protection.

The intellectual capital is the base of innovation, finding opportunities, and efficiently executing the idea into something lucrative. As all these are the need of the hour then we directly correlate that Intellectual Capital is the biggest need of the hour! It is a priceless resource that must be accrued, managed, and protected at all costs.

Other thing to note that Intellectual Capital in corporate terms must not be confused with Business Intelligence as the latter is more focussed towards data analysis and informed decision making.

Your power resting in form of Intellectual Capital can be your biggest weapon and armor in this modern world of hyper-innovations.

In case of any confusion at any stage or phase or division of your enterprise, irrespective of the domain or dimension, feel free to contact me anytime via any channel. Get instant assessment or clear-cut answer to your problems. Get assistance in researches, consultations, Online Reputation Management, and strategy development as well.

About the author-

Jaideep Parashar is an internationally acclaimed best-selling author, researcher, business consultant, 2X-CEO, and mentor & business developer of myriads of international organizations.

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